Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Shanghai Dazhong Public Utilities(Group) Co.,Ltd. (SHSE:600635) is about to go ex-dividend in just 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Shanghai Dazhong Public Utilities(Group)Ltd's shares on or after the 20th of July, you won't be eligible to receive the dividend, when it is paid on the 20th of July.
The company's next dividend payment will be CN¥0.05 per share. Last year, in total, the company distributed CN¥0.05 to shareholders. Based on the last year's worth of payments, Shanghai Dazhong Public Utilities(Group)Ltd has a trailing yield of 1.6% on the current stock price of CN¥3.13. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Shanghai Dazhong Public Utilities(Group)Ltd has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for Shanghai Dazhong Public Utilities(Group)Ltd
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Shanghai Dazhong Public Utilities(Group)Ltd reported a loss last year, so it's not great to see that it has continued paying a dividend. Considering the lack of profitability, we also need to check if the company generated enough cash flow to cover the dividend payment. If cash earnings don't cover the dividend, the company would have to pay dividends out of cash in the bank, or by borrowing money, neither of which is long-term sustainable. It paid out 99% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Cash flows are usually much more volatile than earnings, so this could be a temporary effect - but we'd generally want to look more closely here.
Click here to see how much of its profit Shanghai Dazhong Public Utilities(Group)Ltd paid out over the last 12 months.
SHSE:600635 Historic Dividend July 15th 2022
Have Earnings And Dividends Been Growing?
Companies with falling earnings are riskier for dividend shareholders. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Shanghai Dazhong Public Utilities(Group)Ltd was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last five years, making us wonder if the dividend is sustainable at all.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Shanghai Dazhong Public Utilities(Group)Ltd has delivered 0.7% dividend growth per year on average over the past 10 years.
Remember, you can always get a snapshot of Shanghai Dazhong Public Utilities(Group)Ltd's financial health, by checking our visualisation of its financial health, here.
The Bottom Line
Is Shanghai Dazhong Public Utilities(Group)Ltd worth buying for its dividend? It's hard to get used to Shanghai Dazhong Public Utilities(Group)Ltd paying a dividend despite reporting a loss over the past year. Worse, the dividend was not well covered by cash flow. Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor.
Although, if you're still interested in Shanghai Dazhong Public Utilities(Group)Ltd and want to know more, you'll find it very useful to know what risks this stock faces. To that end, you should learn about the 3 warning signs we've spotted with Shanghai Dazhong Public Utilities(Group)Ltd (including 2 which shouldn't be ignored).
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
一些投资者依靠股息来增加他们的财富,如果你是股息侦探中的一员,你可能会感兴趣地知道上海大众公用事业(集团)有限公司。(上海证券交易所股票代码:600635)将在4天内除息。除息日期是公司记录日期的前一个工作日,也就是公司决定哪些股东有权获得股息的日期。重要的是要知道除息日期,因为股票的任何交易都需要在记录日期或之前结算。因此,如果您在7月20日或之后购买上海大众公用事业(集团)有限公司的股票,当7月20日支付股息时,您将没有资格获得股息。
公司下一次派息为每股0.05元人民币。去年,该公司总共向股东分配了0.05元人民币。根据去年的支付金额,上海大众公用事业(集团)有限公司的往绩收益率为1.6%,目前的股价为3.13元。股息是长期持有者投资回报的主要贡献者,但前提是继续支付股息。因此,读者应该经常查看上海大众公用事业(集团)有限公司是否能够增加股息,或者股息是否可能被削减。
查看我们对上海大众公用事业(集团)有限公司的最新分析
股息通常从公司收益中支付。如果一家公司支付的股息超过了它的利润,那么股息可能是不可持续的。上海大众公用事业(集团)有限公司去年报告亏损,因此看到它继续分红并不是一件好事。考虑到缺乏盈利能力,我们还需要检查公司是否产生了足够的现金流来支付股息。如果现金收益不足以支付股息,该公司将不得不用银行现金支付股息,或者通过借款支付股息,这两种方式都不是长期可持续的。它去年以股息的形式支付了99%的自由现金流,这超出了大多数企业的舒适区。现金流的波动性通常比收益大得多,因此这可能是暂时的影响--但我们通常希望更仔细地研究一下。
点击这里查看上海大众公用事业(集团)有限公司在过去12个月中支付了多少利润。
上证综指:600635历史性股息2022年7月15日
盈利和股息一直在增长吗?
盈利下降的公司对股息股东来说风险更大。如果收益下降,该公司被迫削减股息,投资者可能会眼睁睁地看着他们的投资价值化为乌有。上海大众公用事业(集团)有限公司去年没有盈利,不幸的是,总趋势表明其收益在过去五年里一直在下降,这让我们怀疑股息是否可持续。
衡量一家公司股息前景的另一个关键方法是衡量其历史股息增长率。上海大众公用事业(集团)有限公司在过去10年中平均每年实现0.7%的股息增长。
请记住,您可以随时通过查看我们对上海大众公用事业(集团)有限公司财务状况的可视化了解其财务状况的快照。
底线
上海大众公用事业(集团)有限公司值得买来分红吗?上海大众公用事业(集团)有限公司尽管在过去一年中报告亏损,但仍然支付股息,这让人很难适应。更糟糕的是,现金流并没有很好地覆盖股息。总体而言,对于长期买入并持有的投资者来说,它看起来不是最合适的股息股票。
不过,如果你仍然对上海大众公用事业(集团)有限公司感兴趣,并想了解更多,你会发现了解这只股票面临的风险是非常有用的。为此,您应该了解3个警示标志我们已经发现了上海大众公用事业(集团)有限公司(包括2家不容忽视的公司)。
如果您正在寻找强大的股息支付者,我们建议查看我们精选的顶级股利股票。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。